• Total Revenue: $15.8 million, down 13% year-over-year.
• Lease Revenue: Declined 58% year-over-year in Q4.
• Cash Systems Revenue: Increased 10% year-over-year in Q4.
• Gross Profit: $10.9 million, decreased 10% year-over-year.
• Gross Margin: 69.1% compared to 66.5% in Q4 2023.
• Total Operating Expenses: Decreased 11% to $17.6 million.
• GAAP Operating Loss: $6.7 million compared to $7.6 million in Q4 2023.
• Net Loss: $8 million or $11.23 per share, compared to $11.1 million or $20.14 per share in Q4 2023.
• Adjusted EBITDA Loss: $6.1 million compared to $5.9 million last year.
• Cash and Cash Equivalents: $4.3 million as of December 31, 2024.
• Total Debt Obligations: Approximately $39.7 million, down from $74.9 million as of December 31, 2023.
• Cash Used in Operations: $3.8 million for Q4, compared to $0.8 million last year.
• 2025 Q1 Revenue Outlook: At least $14 million.

• Warning! GuruFocus has detected 5 Warning Signs with VERO.

Release Date: March 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cash sales in the US increased 27% year-over-year, representing 87% of total US system sales in Q4.
• The company successfully reduced its total debt obligations by 47% from the previous year.
• Venus Concept Inc (NASDAQ:VERO) achieved a 14% reduction in cash used in operations year-over-year.
• The company made significant progress in restructuring its debt obligations and secured additional bridge financing.
• The new management structure is designed to streamline decision-making and position the company for growth and profitability.

Negative Points

• Fourth quarter revenue declined by $2.4 million or 13% year-over-year.
• Lease revenue decreased by 58% year-over-year in the fourth quarter.
• Global systems adoption continues to be impacted by macroeconomic headwinds, including high interest rates and tighter credit markets.
• The company experienced supply-related shortfalls in inventory, impacting the ability to close system deals.
• Net loss attributable to stockholders for Q4 2024 was $8 million, compared to a net loss of $11.1 million in Q4 2023.

Q & A Highlights

Q: Can you characterize what a more normalized business profile looks like post-strategic shift, given the macroeconomic conditions? A: Rajiv De Silva, CEO: The structural changes are now behind us, and we expect our performance in 2025 to improve compared to 2024. However, predicting the global economy's impact remains challenging, and we are cautious due to ongoing strategic reviews.

Q: How is the Venus hair business performing, and what are the future prospects? A: Rajiv De Silva, CEO: We are pleased with the performance of the Venus hair business, particularly the Venus robot. Despite financial constraints, we've made significant R&D innovations and see strategic interest in this business, which remains a key value driver.

Q: What is the strategy for growth in 2025, especially after completing the strategic shift? A: Rajiv De Silva, CEO: Internationally, we aim to stabilize ordering rhythms with new distribution partners. In the US, we plan to launch a new body system in the early second half of the year, which we expect to drive growth.

Q: Are there any remaining cost-cutting opportunities, or is the company operating as lean as possible? A: Rajiv De Silva, CEO: Our infrastructure is efficient, and the main issue is the lack of critical mass in sales. We don't foresee significant cost reductions but will adjust variable costs like marketing as sales grow.

Q: How might tariffs impact your business, particularly in terms of international and US operations? A: Rajiv De Silva, CEO: Our robot is manufactured in the US, and energy-based products are made in Israel, which has been protected from increased tariffs. We do not expect a substantial near-term impact from tariffs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.